Week One - Types of Business Entities (Cooperatives)

Question 1

What is the nature of cooperatives?

Answer 1

Based on the values of;

1. Self-help
2. Responsibility
3. Equality

Question 2

What is the characteristics of cooperatives?

Answer 2

• They must have at least five members (5)

* Viewed as democratic organisations, run by the members

Question 3

What types of cooperatives can there be?

Answer 3

1. Distributing cooperative (distribute by shares or dividends)
2. Non-distributing cooperative (cannot distribute - suitable for community organisations)
3. Commercial cooperative (Dorrigo Memorial RSL)
4. Non-commercial cooperative (Tamil Senior)

Question 4

How are cooperatives administered?

Answer 4

• Administered by State Law/Registry
• In NSW, administered by NSW Fair Trading Registry Services
• This institution also abides by Co-Operatives National Law (NSW)

Question 5

What is the liability of cooperatives?

Answer 5

• Cooperatives are separate legal entities

* They bear liability for all their acts, its members are not liable

Question 6

What are some examples of cooperatives?

Answer 6

• Aboriginal Medical Service Co-operative Limited
• Dorrigo Memorial RSL Club Co-op Ltd
• Tamil Senior Citizens Housing Co-operatives Limited